I live in North Cal and have been looking for MF investments in my area. After a few weeks of networking and reading on the forums, I found the cap rates and IRR in metro cities in North Cal are not so attractive so I decided to expand my search to Nevada. To my surprise, these are not a lot of discussions about NV market in general except for Las Vegas.
I鈥檓 wondering if the secondary or tertiary markets in NV are worth investing right now. What makes the NV markets unique and attractive to small investors? I appreciate if anyone can pitch in their ideas.
Rental Property Investor 路 Reno, NV 路 Member since 2018 路 18 posts 路 9 votes
7y
Hi Jack, just seeing this. Phillip is right that multifamily investing in Nevada groups around the Reno and Vegas areas. Northern Nevada has a load of investment coming into the region but at the larger level of development.
Housing is thin. Demand is high. Housing prices are at record heights, but wages remain low. Cap rates are hovering just over 5%, with cashflowing opportunities difficult to find. For those comfortable to speculate on continued appreciation in an already record-setting market, there's plenty to choose from 馃馃憤馃徑
Real Estate Agent 路 Henderson, NV 路 Member since 2011 路 1k+ posts 路 550 votes
7y
Take a look at the map. There are really only two metropolitan areas: LasVegas and Reno. The rest of the state is mostly federally owned land with a few small mining communities scattered around.
Take a look at the map. There are really only two metropolitan areas: LasVegas and Reno. The rest of the state is mostly federally owned land with a few small mining communities scattered around.
How about Reno then? Isn't Tesla's Giga factory bring in a lot of tech jobs? Should we expect long term job growth there?
Real Estate Agent 路 Henderson, NV 路 Member since 2011 路 1k+ posts 路 550 votes
7y
@Jack Zhuang Reno is not an area that I know much about. However, what you mentioned has and is happening from what I've read. Plus it's relatively close to Sacramento.
Rental Property Investor 路 Reno, NV 路 Member since 2018 路 18 posts 路 9 votes
7y
Hi Jack, just seeing this. Phillip is right that multifamily investing in Nevada groups around the Reno and Vegas areas. Northern Nevada has a load of investment coming into the region but at the larger level of development.
Housing is thin. Demand is high. Housing prices are at record heights, but wages remain low. Cap rates are hovering just over 5%, with cashflowing opportunities difficult to find. For those comfortable to speculate on continued appreciation in an already record-setting market, there's plenty to choose from 馃馃憤馃徑
@Cary Crites what do you think the Tesla workforce work and travel to Reno? Are the high paying tech jobs boosting Reno鈥檚 local real estate market? What are the actual local influences to the local economy from the EV giant?
In addition to great investment opportunities, you can escape CA's high taxes and high cost of living to "Tax-Free" Nevada (for residents) just a few hours away! Reno is just a short drive from the great vacation escape of Lake Tahoe. As a CA Investor, Reno should be your first choice! Best of luck-
Investor 路 Concord, CA 路 Member since 2016 路 53 posts 路 22 votes
7y
We recently were looking for a SF to rent out in Minden, NV. Our plan was to move from CA in a couple years but the market was not cheap. We got more for our money in Carson City. The scuttlebut is that CA buyers are pushing up prices quickly. The rent barely covers the mortgage.
Next I wanted income property but Short term Rental (STR) is Fighting for its life in 3 counties bc of the casino/hotel influence I think. The giga factory in Sparks, NV is already pushing up pricing and stock isn't too abundant. Multis were few so I started looking in other states.
There maybe what you鈥檙e looking for here but the numbers didn鈥檛 work for me.
Real Estate Broker 路 DC MD, VA & NV 路 Member since 2014 路 512 posts 路 292 votes
6y
Curious whether any here have since invested in Reno? @Jack Zhuang? @Cary Crites, @Phillip Dwyer? I've got several investors circling Reno but seem hesitant to jump as initial returns are low... Multi-family market here is slim as a number of odd SF Homes converted to Multi-family. Due to job growth & housing shortage, I still see this a a hotbed of appreciation opportunity. And even with COVID, SF homes are flying off the market. Thoughts as Investors?
Real Estate Agent 路 Henderson, NV 路 Member since 2011 路 1k+ posts 路 550 votes
6y
@Marian Huish Given that Reno is like at least an 8 hour drive from Vegas, I know very little about the market there other than what I read about Tesla.